TN HEALTH INSURANCE EXAM
QUESTIONS AND ANSWERS GRADED A+
2025/2026
Provides periodic payments when an insured is unable to work because of injury or illness:
a. Credit Purchase Insurance
b. Key Man Insurance
c. Disability Income Insurance
d. Buy-Sell Disability - ANS c. Disability Income Insurance
Time before benefits are payable after a covered accident or illness occurs is usually found in
disability policies:
a. Stop loss provision
b. Elimination Period
c. Probationary Period
d. Aleatory Period - ANS b. Elimination Period
Provides funds to pay operating expenses of a business when insured owner is totally disabled
(doctor, lawyer):
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,a. Business Overhead Insurance
b. Key Employee Disability Insurance
c. Disability Fallout Insurance
d. Buy-Sell Disability - ANS a. Business Overhead Insurance
Pays a monthly benefit to a business to cover additional help and pay an essential person while
disabled:
a. Business Overhead Insurance
b. Key Employee Disability Insurance
c. Disability Fallout Insurance
d. Individual Disability Policy - ANS b. Key Employee Disability Insurance
Insurer's obligation to pay is based on a contingency. If insured does not suffer a loss, they will
not be paid. They do have "peace of mind". However, those who suffer a loss will receive many
more dollars in claims than paid in premiums:
a. Unilateral
b. Aleatory
c. Adhesion
d. Conditional - ANS b. Aleatory
Pick something without an elimination period:
a. Recurrent Disability
b. Residual Disability
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,c. Partial Disability
d. Total Disability - ANS a. Recurrent Disability
Free look period on long term or medicare supplements:
a. 10 days
b. 15 days
c. 30 days
d. 90 days - ANS c. 30 days
The law requires employers with 25 or more employees with health care benefits to offer
enrollment in an HMO if available. The principle objectives of HMO's are:
a. Stress preventative medicine through exams and diagnostic procedures.
b. Reducing necessary hospital admissions and average total days spent
c. Adding duplication of benefits
d. To keep from paying the smaller claims and lab work - ANS a. Stress preventative medicine
through exams and diagnostic procedures.
A _________ must be paid by the HMO member in order to receive a basic health care service;
a. Coinsurance
b. Co-payment
c. Euro
d. deductible - ANS b. Co-payment
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, This type of plan pays 100% after a copayment for services from a listed provider but would still
pay 80% for a provider of your choice:
a. HMO
b. Major Medical Policy
c. PPO
d. MET - ANS c. PPO
Insurer provides insured a medicare advantage plan:
a. You would need a supplement
b. You would not need a supplement
c. You would need to buy part A
d. You would need to buy part B - ANS b. You would not need a supplement
Social Security Disability must be expected to last:
a. At least 12 months or result in death
b. 2 years
c. 5 years
d. Needs only to be severe - ANS a. At least 12 months or result in death
Medicare is a federal health insurance program for:
a. People 65 or older
b. People of any age with permanent kidney failure
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS GRADED A+
2025/2026
Provides periodic payments when an insured is unable to work because of injury or illness:
a. Credit Purchase Insurance
b. Key Man Insurance
c. Disability Income Insurance
d. Buy-Sell Disability - ANS c. Disability Income Insurance
Time before benefits are payable after a covered accident or illness occurs is usually found in
disability policies:
a. Stop loss provision
b. Elimination Period
c. Probationary Period
d. Aleatory Period - ANS b. Elimination Period
Provides funds to pay operating expenses of a business when insured owner is totally disabled
(doctor, lawyer):
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,a. Business Overhead Insurance
b. Key Employee Disability Insurance
c. Disability Fallout Insurance
d. Buy-Sell Disability - ANS a. Business Overhead Insurance
Pays a monthly benefit to a business to cover additional help and pay an essential person while
disabled:
a. Business Overhead Insurance
b. Key Employee Disability Insurance
c. Disability Fallout Insurance
d. Individual Disability Policy - ANS b. Key Employee Disability Insurance
Insurer's obligation to pay is based on a contingency. If insured does not suffer a loss, they will
not be paid. They do have "peace of mind". However, those who suffer a loss will receive many
more dollars in claims than paid in premiums:
a. Unilateral
b. Aleatory
c. Adhesion
d. Conditional - ANS b. Aleatory
Pick something without an elimination period:
a. Recurrent Disability
b. Residual Disability
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,c. Partial Disability
d. Total Disability - ANS a. Recurrent Disability
Free look period on long term or medicare supplements:
a. 10 days
b. 15 days
c. 30 days
d. 90 days - ANS c. 30 days
The law requires employers with 25 or more employees with health care benefits to offer
enrollment in an HMO if available. The principle objectives of HMO's are:
a. Stress preventative medicine through exams and diagnostic procedures.
b. Reducing necessary hospital admissions and average total days spent
c. Adding duplication of benefits
d. To keep from paying the smaller claims and lab work - ANS a. Stress preventative medicine
through exams and diagnostic procedures.
A _________ must be paid by the HMO member in order to receive a basic health care service;
a. Coinsurance
b. Co-payment
c. Euro
d. deductible - ANS b. Co-payment
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, This type of plan pays 100% after a copayment for services from a listed provider but would still
pay 80% for a provider of your choice:
a. HMO
b. Major Medical Policy
c. PPO
d. MET - ANS c. PPO
Insurer provides insured a medicare advantage plan:
a. You would need a supplement
b. You would not need a supplement
c. You would need to buy part A
d. You would need to buy part B - ANS b. You would not need a supplement
Social Security Disability must be expected to last:
a. At least 12 months or result in death
b. 2 years
c. 5 years
d. Needs only to be severe - ANS a. At least 12 months or result in death
Medicare is a federal health insurance program for:
a. People 65 or older
b. People of any age with permanent kidney failure
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
